Wow Taj: Not now at least as the stock dips, dips and just dips

Tata Group, which was built by the business tycoon Ratan Tata and which is known for its corporate governance practices is facing one of the toughest times in its life time. On October 24, the group abruptly removed Cyrus Mistry from the post of chairman and brought in Ratan Tata as the interim chairman. The sudden removal of Cyrus Mistry erupted a controversy and recent 5-page letter by the former chairman has provided wind to the fire. In the letter, Mistry has straight away accused Ratan Tata stating that he constantly interfered and pushed him into becoming a “lame duck”.

Mistry in his letter believed that the Indian Hotels was a debt ridden company and he was singled out when he stepped in. Mistry also pointed out that despite investing several millions in Indian Hotels it still faces challenges. The shares of the company on October 27 have taken a nosedive and as at 12.16 am are trading at Rs 115, down by 5 per cent from its previous close. The Indian Hotels Company is one of Asia's largest and finest group of hotels. The hotel is one of the oldest hotel of the country. Meanwhile a clarification is sought by the exchanges on the allegations made and the reply is awaited. In Q1FY17, Indian Hotel Company had posted a net loss of Rs 9 crores and the outcome of Q2 is awaited.